SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
(RULE 13D-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES
13D-1(B), (C) AND (D) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13D-2(B)
(Amendment No. __)(1)
Akorn, Inc.
-----------
(Name of Issuer)
Common Stock
------------
(Title of Class of Securities)
009728106
---------
(CUSIP Number)
August 23, 2004
---------------
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
|_| Rule 13d-1(b)
|X| Rule 13d-1(c)
|_| Rule 13d-1(d)
(Page 1 of 12 Pages)
------------------
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the
liabilities of that section of the Exchange Act but shall be subject to all
other provisions of the Exchange Act (however, see the Notes).
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CUSIP NO. 009728106 13G Page 2 of 12 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Baystar Capital II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
0
NUMBER OF ------------------------------------------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,407,408
EACH ------------------------------------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
------------------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,407,408
--------------------------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,407,408
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* |_|
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
10.5%
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12 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP NO. 009728106 13G Page 3 of 12 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Baystar Capital Management, LLC
--------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF ------------------------------------------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,407,408
EACH ------------------------------------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
------------------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,407,408
--------------------------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,407,408
--------------------------------------------------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
10.5%
--------------------------------------------------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP NO. 009728106 13G Page 4 of 12 Pages
--------- ----------- ------------
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Lawrence Goldfarb
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF ------------------------------------------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,407,408
EACH ------------------------------------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
------------------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,407,408
--------------------------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,407,408
--------------------------------------------------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
10.5%
--------------------------------------------------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP NO. 009728106 13G Page 5 of 12 Pages
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Steven M. Lamar
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF ------------------------------------------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,407,408
EACH ------------------------------------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
------------------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,407,408
--------------------------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,407,408
--------------------------------------------------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
10.5%
--------------------------------------------------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP NO. 009728106 13G Page 6 of 12 Pages
--------- ----------- ------------
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Bay East, L.P.
--------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF ------------------------------------------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,407,408
EACH ------------------------------------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
------------------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,407,408
--------------------------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,407,408
--------------------------------------------------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
10.5%
--------------------------------------------------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP NO. 009728106 13G Page 7 of 12 Pages
--------- ----------- ------------
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Steven Derby
--------------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF ------------------------------------------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 2,407,408
EACH ------------------------------------------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
------------------------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,407,408
--------------------------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,407,408
--------------------------------------------------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
10.5%
--------------------------------------------------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
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CUSIP NO. 009728106 13G Page 8 of 12 Pages
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SCHEDULE 13-G - TO BE INCLUDED IN STATEMENTS
FILED PURSUANT TO RULE 13d-1(c)
ITEM 1(A). NAME OF ISSUER:
Akorn, Inc.
ITEM 1(B). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
2500 Millbrook Drive
Buffalo Grove, Illinois 60089
ITEM 2(A). NAME OF PERSON FILING:
Baystar Capital II, L.P. (the "Partnership")
c/o Baystar Capital Management, LLC
80 East Sir Francis Drake Blvd., Suite 2B
Larkspur, CA 94939
Delaware limited partnership
Baystar Capital Management, LLC (the "General Partner")
80 East Sir Francis Drake Blvd., Suite 2B
Larkspur, CA 94939
Delaware limited liability company
Mr. Lawrence Goldfarb
Managing Member of the General Partner
80 East Sir Francis Drake Blvd., Suite 2B
Larkspur, CA 94939
United States citizen
Mr. Steven M. Lamar
Managing Member of the General Partner
80 East Sir Francis Drake Blvd., Suite 2B
Larkspur, CA 94939
United States citizen
Bay East, L.P.
Managing Member of the General Partner
53 Forest Avenue, 2nd Floor
Old Greenwich, CT 06870
Delaware limited partnership
Mr. Steven Derby
General Partner of Bay East, L.P.
53 Forest Avenue, 2nd Floor
Old Greenwich, CT 06870
United States citizen
The Partnership, the General Partner, Mr. Lamar, Mr. Goldfarb,
Bay East, L.P. and Mr. Derby are collectively referred to herein as the
Reporting Persons.
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CUSIP NO. 009728106 13G Page 9 of 12 Pages
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ITEM 2(B). ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
See Item 2(a).
ITEM 2(C). CITIZENSHIP:
ITEM 2(D). TITLE OF CLASS OF SECURITIES:
Common Stock, no par value (the "Common Stock")
ITEM 2(E). CUSIP NUMBER:
009728106
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULE 13D-1(B), OR 13D-2(B) OR
(C), CHECK WHETHER THE PERSON FILING IS A:
Not applicable.
ITEM 4. OWNERSHIP.
As of the date hereof, each of the Reporting Persons may be deemed to
beneficially own (i) 1,851,852 shares of Common Stock underlying 50,000 shares
of the Issuer's Series B 6% Participating Convertible Preferred Stock, par value
$1.00 per share and (ii) 555,556 shares of Common Stock underlying warrants for
Common Stock.
1. The Partnership
(a) Amount beneficially owned: 2,407,408 shares
(b) Percent of class: 10.5%. (The percentage of Common Stock
reported as beneficially owned is based upon 20,507,756 shares outstanding as
reported by the Issuer on its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2004.)
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote:
2,407,408 shares
(ii) Shared power to vote or to direct the vote: 0
shares
(iii) Sole power to dispose or to direct the
disposition of: 2,407,408 shares
(iv) Shared power to dispose or to direct the
disposition of: 0 shares.
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CUSIP NO. 009728106 13G Page 10 of 12 Pages
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2. The General Partner
(a) Amount beneficially owned: 2,407,408 shares
(b) Percent of class: 10.5%. (The percentage of Common Stock
reported as beneficially owned is based upon 20,507,756 shares outstanding as
reported by the Issuer on its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2004.)
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote:
2,407,408 shares
(ii) Shared power to vote or to direct the vote: 0
shares
(iii) Sole power to dispose or to direct the
disposition of: 2,407,408 shares
(iv) Shared power to dispose or to direct the
disposition of: 0 shares.
The shares reported herein by the General Partner may be
deemed beneficially owned as a result of the purchase of such shares by the
Partnership. The General Partner, in its capacity as the sole general partner of
the Partnership, may be deemed to have the sole power to vote or to direct the
vote and to dispose or to direct the disposition of the shares beneficially
owned by the Partnership. The General Partner disclaims any beneficial ownership
of the shares reported herein.
3. Mr. Lamar, Mr. Goldfarb, Bay East, L.P. and Mr. Derby
(a) Amount beneficially owned: 2,407,408 shares
(b) Percent of class: 10.5%. (The percentage of Common Stock
reported as beneficially owned is based upon 20,507,756 shares outstanding as
reported by the Issuer on its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2004.)
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote: 0
shares
(ii) Shared power to vote or to direct the vote:
2,407,408 shares
(iii) Sole power to dispose or to direct the
disposition of: 0 shares
(iv) Shared power to dispose or to direct the
disposition of: 2,407,408 shares
The shares reported herein by the General Partner may be
deemed beneficially owned as a result of the purchase of such shares by the
Partnership. Messrs. Lamar and Goldfarb and Bay East, L.P., in their capacities
as the managing members of the General Partner, and Mr. Derby, in his capacity
as the general partner of Bay East, L.P., may be deemed to share the power to
vote or to direct the vote and to dispose or to direct the disposition of the
shares beneficially owned by the Partnership. Each of Bay East, L.P. and Messrs.
Lamar, Goldfarb and Derby disclaim beneficial ownership of the shares reported
herein except to the extent of any indirect pecuniary interest therein.
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CUSIP NO. 009728106 13G Page 11 of 12 Pages
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ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
If this statement is being filed to report the fact that as of
the date hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the class of securities, check the following [ ].
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Not applicable.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY OR
CONTROL PERSON.
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF A GROUP.
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable.
ITEM 10. CERTIFICATION.
By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were not acquired and are not held
for the purpose of or with the effect of changing or influencing the control of
the issuer of the securities and were not acquired and are not held in
connection with or as a participant in any transaction having that purposes or
effect.
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CUSIP NO. 009728106 13G Page 12 of 12 Pages
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
BAYSTAR CAPITAL II, L.P.
By: Baystar Capital Management, LLC, its General Partner
By: /s/ Lawrence Goldfarb
------------------------------------
Name: Lawrence Goldfarb
Title: Managing Member
BAYSTAR CAPITAL MANAGEMENT, LLC
By: /s/ Lawrence Goldfarb
------------------------------------
Name: Lawrence Goldfarb
Title: Managing Member
/s/ Lawrence Goldfarb
----------------------------------------
Lawrence Goldfarb
/s/ Steven M. Lamar
----------------------------------------
Steven M. Lamar
BAY EAST, L.P.
By: /s/ Steven Derby
------------------------------------
Name: Steven Derby
Title: General Partner
/s/ Steven Derby
----------------------------------------
Steven Derby